View more on these topics

AIG breathes Life into bond

AIG Life has unveiled the capital portfolio bond, a unit-linked bond enabling IFAs to tailor investment portfolios to different risk profiles and investment objectives.

Investors get access to a range of AIG Life guaranteed funds, tracker funds and its cash fund. Fifty-seven external funds from managers such as Aberdeen, Fidelity and Gartmore are also available. These cover a range of sectors including technology, property, global utilities and UK blue chip funds.

One advantage for investors is that they can switch between the funds at any time without charge. This enables changes to be made to investors&#39 portfolios if their personal circumstances or stockmarket conditions alter and a more cautious or aggressive risk profile is required.

The bond allows investors and their IFAs to choose the charging structure of the bond. There are three options — enhanced allocation, total allocation and penalty free. The differences between them mean that the higher the allocation rates, the more likely it is that an initial charge and early encashment charge will be made.

The bond differs from competitors such as Friends Provident in that it focuses on externally managed funds plus its own guaranteed and tracker funds. Guaranteed funds are proving popular as investors are erring on the side of caution and AIG Life&#39s funds allow investors to choose the level of capital protection and the geographic region. However, some investors could feel overwhelmed by the number of funds available through this bond.

According to Standard & Poor&#39s, out of 46 AIG Life guaranteed funds that have three-year past performance, 21 are top quartile and 25 are bottom quartile based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to September 24, 2001.

.

Recommended

CIS targets IFAs with DC pensions

CIS is moving in to the intermediary market for the first time by offering its range of defined-contribution pensions through IFAs. The company, which has until now operated solely through its direct salesforce, will develop a business arm to distribute corporate pensions through employee benefits consultants. Initially, the group stakeholder and AVCs market have been […]

CMG Admiral in Asian IT deal with Towry Law

CMG Admiral has signed a £4.5m 10 year deal with Towry Law to outsource its IT services internationally.The deal will see CMG Admiral streamline Towry Law&#39s existing infrastructure across its Asian operations, including Hong Kong, Dubai, Bahrain, Japan and Malaysia.Towry Law chief operating officer Keith Webb says: “Towry Law can embrace internationally CMG Admiral&#39s ability […]

Scot Wids Bank reduces home equity loan rate

Scottish Widows Bank has reduced the interest rate on its home equity loan to 7.75 per cent from 8.19 per cent.It says it has made this cut by employing market-leading treasury techniques which allow home owners over 60 to release capital tied up in their home.The interest rate is fixed for the full period of […]

A consumer&#39s view

Standard Life storms into the buy-to-let market, read a news headline a couple of weeks ago. Perhaps it is just journalistic cynicism but it is difficult to dismiss the thought that this will probably signal the top of the property investment market, at least in the short term. Those of us who have been around […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment